- The recent minor corrective pull-back of -4.7% from its 19 September 2023 high of US$93.05 is likely to have ended.
- Bullish reversal candlestick, a daily “Hammer” sighted after a retest on its upward-sloping 20-day moving average.
- Key short-term support to watch will be at US$90.30, the pull-back of the former minor “pennant” range resistance.
This is a follow-up analysis of our prior report, “WTI Oil Technical: Bullish exhaustion sighted below US$93.80 per barrel key resistance” published on 20 September 2023. Click here for a recap.
West Texas Oil (a proxy of WTI crude oil futures) has indeed shaped the bearish counter-trend pull-back movement of -4.7% from its 19 September 2023 minor swing high of US$93.05/barrel to a low of US$88.66/barrel printed yesterday, 26 September which fell short of the earlier highlighted short-term support zone of US$86.30/US$84.90 as per highlighted in our prior analysis.
Overall, the price actions of West Texas Oil are still evolving within a major uptrend phase which is still intact since its 4 May 2023 low of US$63.67 per barrel.
Key bullish reversal sighted after a retest on the 20-day moving average
Fig 1: West Texas Oil medium-term& major trends as of 27 Sep 2023 (Source: TradingView, click to enlarge chart)
Interestingly, there was a significant change in sentiment yesterday that led to the formation of a daily bullish reversal “Hammer” candlestick pattern right after a retest on the upward-sloping 20-day moving average that is acting as a support at around US$88.90/barrel.
These positive technical elements where price actions have staged an intraday reversal from yesterday, 26 September intraday low of US$88.66/barrel and closed near the upper end of its intraday range suggests a potential start of another medium-term impulsive up move sequence within its major uptrend phase.
Bullish breakout from minor “pennant” range configuration
Fig 2: West Texas Oil minor short-term trend as of 27 Sep 2023 (Source: TradingView, click to enlarge chart)
Yesterday’s price actions of West Texas Oil have also staged a bullish breakout from a 5-day minor “pennant” range configuration which indicates a potential continuation of its prior short-term bullish movement above the 20-day moving average.
Watch the US$90.30 key short-term pivotal support for a potential push up towards US$93.80 and a clearance above it sees the next intermediate resistance coming in at US$95.80.
On the other hand, failure to hold at the US$90.30 key support invalidates the minor bullish breakout scenario for another round of corrective pull-back to expose the next intermediate support zone of US$88.90/US$88.06.
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